Labor laws liberalization and COVID-19: A study of the impact of this crisis on practices and preparedness of India Inc

Jatin Bishnoi

doi:10.17762/pae.v57i9.1659

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Published: Dec 30, 2020

DOI: https://doi.org/10.17762/pae.v57i9.1659

Jatin Bishnoi

Abstract

Purpose - Labor laws in India have historically been pro-employees, however in light of the recent steps such as the 2018 amendment to the IESO Act allowing fixed-term employment for core-perennial tasks, reduced licensing red tape, consolidation through new labor codes etc. and furthermore the severe impact of COVID-19 on the livelihoods of Indian labor as well as on the viability of businesses, the purpose of this study is to capture the resultant influence on the state of industry preparedness towards the changing paradigm of industrial relations in India.

Proposed Design/Methodology/Approach – Using interviews and secondary research to analyze the industry impact of liberalization of labor laws in India before the COVID-19 crisis, capture the evolving industry practices and expectations amidst the crisis for comparative analysis by leveraging bivariate correlation analyses through Spearman’s rho correlation coefficient in order to determine the extent of correlation among the chief indicators of our primary, component and compound hypotheses, and discover the extent of industry awareness of the impact of COVID-19 on changing labor law compliance requirements and their state of preparedness around the same.

Findings – An informed comparison of pre and post COVID-19 crisis industry outlooks, practices in relation to their workforce and the extent of industry preparedness towards evolving Indian labor laws.

Practical/Theoretical Implications – With the global imperative for liberalization of the labor laws in India as the competition with China and other markets in South-East Asia and Africa intensifies, it is essential to understand the lasting impact of COVID-19 on industrial relations in India.

Originality/Value – This is an effort to undertake research as original work in order to not only enable better policymaking but also aid and bolster industry preparedness in this evolving paradigm of industrial relations in India

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Vol. 57 No. 9 (2020): Volume 57 No. 9 (2020)

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